Next week�s earnings schedule is far from empty, though most of the notable names are hardly head-turners. Walgreen (NYSE:WAG), Jabil Circuit (NYSE:JBL), Synnex (NYSE:SNX), and Mosaic (NYSE:MOS) may provide opportunity, but probably won�t grab headlines.
Another name that has plenty of size � more than 220,000 employees � but perhaps less sizzle is Irish consulting firm Accenture (NYSE:ACN). The company reports after the close next Tuesday, with analysts looking for a profit of 88 cents a share, a 33% increase from a year ago, but 5 cents short of the 93 cents ACN earned in its most recent quarter.
ACN sports an impressive earnings track record, falling short of the consensus analyst estimate just once in the past six years. And the stock has done well after recent reports: The shares have gained ground the day following the past five reports, averaging a gain of 5.4% in just the one day after reporting.
On the chart, the stock is working its way from the August low, having gained about 11% in the past month. Amid Thursday�s big selloff in the market, the stock is currently around $51.50, while a $53 had defined a bottom in June and also marks its 200-day moving average.
Sentiment is mostly positive toward ACN, which is expected for a stock up about 10% this year when the overall market is down by that amount. One encouraging sign for the stock is a declining put/call ratio, an indication of unwinding pessimism and added buying pressure.
With a strong record of beating earnings estimates, solid post-earnings price action, and technical support in place, we like ACN heading into earnings next week. Buy the October 52.50 call for three bucks or less.
Have a great trading week.
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